OBG Business Barometer: Indonesia CEO Survey Results Published

Jakarta, 22 May 2017: Investor confidence and expectation look to be on the rise in Indonesia, according to a new survey by the global research and consultancy firm Oxford Business Group (OBG), in collaboration with PwC Indonesia, with concerns relating to political uncertainty, infrastructural shortfalls and frequent legislative changes giving way to an increasingly favourable outlook.

As part of its first-time Business Barometer: Indonesia CEO Survey, OBG asked high-level executives from across the industries a wide-ranging series of questions on a face-to-face basis aimed at gauging business sentiment. The findings are now available to view on OBG’s Editors’ Blog.

From those surveyed, 92% of respondents described their expectations for local business conditions in the coming 12 months as either positive or very positive. In answer to a separate question, 40% of business leaders surveyed said they were very likely to make a significant capital investment within the same timeframe.

OBG’s survey also highlighted the significant role of the private sector in Indonesia’s economy, with over half (54%) of respondents calculating that less than 20% of their business resulted from government spending.

Red tape remains a barrier for decision-makers, however, with almost 50% of those surveyed citing bureaucracy as their top concern in doing business, followed by securing human resources.

PwC Indonesia Senior Partner, Irhoan Tanudiredja, noted that “The positive perception of survey respondents on the Indonesian investment climate bodes well for growth in the coming years. It also indicates that the government’s economic reform packages and efforts to cut bureaucracy and improve transparency are beginning to bear fruit, although there is still room for improvement.”

OBG’s Managing Editor for Asia, Paulius Kuncinas, said improved business sentiment in Indonesia was reflected in higher levels of foreign direct investment, with volumes up 2.1% in the fourth quarter of 2016, according to the country’s Investment Coordinating Board (BKPM).

“Indonesia’s future economic growth will be driven by higher household consumption, as well as a pick-up in private sector investment in sectors such as housing, infrastructure, energy and manufacturing,” he said.

Kuncinas added that the target of 5.1% growth for 2017 could be surpassed if infrastructural projects are accelerated.

“The main challenge going forward remains a lack of infrastructure and relatively high cost of logistics compared to other ASEAN nations,” he noted, “but on balance, the survey signals a shift in expectations amongst business leaders that will likely lead to higher investment flows in 2017.”

Kuncinas’s in-depth evaluation of the survey’s results can be found on OBG’s Editors’ Blog, titled ‘Next Frontier’. All four of OBG’s regional managing editors use the platform to share their expert analysis of the latest developments taking place across the sectors of the 35+ high-growth markets covered by the company’s research.

The OBG Business Barometer: CEO Surveys mark an addition to the Group’s extensive portfolio of research tools. The full results of the survey on Vietnam will be made available online and in print. Similar studies are also under way in the other markets in which OBG operates.

About OBG Business Barometer:

This survey has been designed to assess business sentiment amongst business leaders (Chief Executives or equivalent) and their outlook for the next 12 months. Unlike many surveys, the OBG Business Barometer is conducted by OBG staff on a face-to-face basis, across the full range of industries, company sizes and functional specialties. The results are anonymous.

OBG Business Barometer is based on data from companies with revenue within the following parameters, among others:

  • 38% of companies surveyed were international
  • 51% of companies surveyed were local
  • 89% of companies surveyed were private

The data generated allows for analysis of sentiment within an individual country, as well as regionally and globally. Additionally, comparisons can be drawn between both individual countries and regionally. The results are presented statistically within infographics and discussed in articles written by OBG Managing Editors.

OBG provides this survey, infographics and accompanying analysis from sources believed to be reliable, for information purposes only. OBG accepts no responsibility for any loss, financial or otherwise, sustained by any person or organisation using it.

For further information on the content of the survey, please contact: Paulius Kuncinas, Managing Editor for Asia, at

Should you wish to reproduce any element of this survey, infographics and accompanying analysis please contact Any unauthorised reproduction will be considered an infringement of the Copyright. For further details about OBG and how to subscribe to our widely acclaimed business intelligence publication please visit

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